UK Average Property Prices are Still Higher in Comparison to Previous Year

UK average property prices are still higher in comparison to previous year

12 Oct 2018

UK Average Property Prices

There has been a drop in property rates in the long stretch of September, yet the costs are as yet higher. Halifax reports the growth rate was 2.5 per cent in September, dropping by 1.4 per cent from the August average rate, at £225,995.

The data suggests the markets of East and West Midlands, Humber and Yorkshire are buoyant, where sale agreements can be made in weeks, but the London markets have no clear direction in house price growth

These markets are driven by low supply, low unemployment, and low-interest rates. Initially, the company forecasted the price would be in the range of 0 to 3 per cent in the year, but it is observed that most investments are driven towards the top of the range.

Growth in Letting

The letting market remained active in the country, with a growth of 13.3 per cent per annum, and the lease signing was up by 3.5 per cent. However, the supply of rental property fell 6.9 per cent per quarterly analysis from Reapit and Dataloft. The report was based on combined data of letting agencies from various rental markets, viewing and demand signals.

The withdrawal of landlord mortgage tax relief forced many landlords to sell the property, leading to supply issues. The survey by the company finds at least 10 per cent of the homeowners are actively considering selling, which will negatively impact rental inventories.

Lower Range Markets Doing Well

RICS claims the remarks by Carney influenced buyers who were actively seeking to move to new homes in the last few months as investors fear political and economic instability.

However, the RICS survey report based on consumer sentiments and viewers shows that new buyers are holding back due to uncertainties, which can reduce transactions in some specific sections and regions.

Slow down in the purchase, affordability issues and lack of homes were responsible for low real estate transactions in September. In addition, the disparity in property rates across the country is also affecting buyers.

The section of the market where homes were below £250,000 is doing well, whereas the ones in the mid-market range are flat.

Zoopla's study on fast-moving properties found that Edinburgh properties sell fastest. In Manchester, the property takes, on average, 36 days to sell, whereas, in London, it takes 54 days, on average, to get an offer.

Reducing Rental Inventory

The website "Home dot co dot UK" claims the number of rental properties is falling in the country, especially in Greater London, as per the new data and the available homes on rent stay for less than 20 weeks.

Growth in Construction

Construction grew by 1.5 per cent in the last quarter to August 2018, which was led by a growth of 15 per cent in the North West, which is more than ten times the country's average. As a result, the investments in North West housing increased by £386 million in the quarter compared to the last year as per ONS statistics.

The construction of new housing was up by 5.6 per cent in the last quarter. Most constructions target first-time buyers who have the advantage of stamp duty and the bargains under the Help to Buy scheme. 

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